An economics professor at Misrata University confirmed that the uncontrolled spending by the reconstruction fund affiliated with Belqasim Haftar, along with the governments of Abdul Hamid Dbeibeh and Osama Hammad, exacerbates pressure on the exchange rate and places the greatest burden on the Libyan citizen.
He explained that the demand for foreign currency averages over three billion dollars per month, while the Central Bank’s supply does not exceed two billion dollars—a level close to the value of oil revenues. This has forced the Central Bank to impose restrictions on foreign currency sales in recent months.
He pointed out that continuing this approach threatens a rapid increase in the exchange rate on the parallel market, given the absence of disciplined fiscal policies capable of maintaining monetary balance.
He revealed that a new devaluation of the Libyan dinar is a likely possibility in the near term, as this option is being discussed within the Central Bank’s corridors to address mounting pressures on liquidity and the exchange rate.
